Influence Strategies

The Implementation Skills competency contains the following five skills:

1. Influence Strategies
2. Support Decision Making?
3. Become a Critical Voice
4. Manage Stakeholders?
5. Be the Co-Pilot to your CEO

Today's Newsletter will focus on Skill 1: Influence Strategies?

Influence strategies are methods used by leaders to build relationships, effectively communicate insights, demonstrate expertise, engage proactively in discussions, and leverage data to sway decision-making and shape organizational outcomes.

If CFOs do not actively engage in influencing strategies, several negative consequences can arise:

1. Missed Opportunities: By not contributing to strategic discussions, CFOs risk overlooking key financial insights that could drive growth, efficiency, and innovation. This can lead to missed opportunities for the company to capitalize on market trends or optimize resource allocation.
2. Devaluation of Role: Exclusion from strategic planning can diminish the perceived value of the CFO position within the company. If CFOs are seen as merely number crunchers rather than strategic partners, it can weaken their authority and influence in the boardroom.
3. Stagnation of Career: Lack of involvement in high-level discussions can hinder career advancement. CFOs who do not establish themselves as thought leaders may find it challenging to move into higher leadership roles or secure future opportunities.
4. Ineffective Decision-Making: When CFOs are not consulted, financial implications of decisions may not be fully understood. This can lead to poor strategic choices that negatively impact the company’s financial health and long-term viability.
5. Weaker Organizational Alignment: A CFO’s insights are essential for aligning financial and operational strategies. Without active participation, there may be a disconnect between financial goals and broader business objectives, resulting in inefficiencies and misaligned priorities.

By sharing your insights and ideas with others, you will show that you have the knowledge and experience to contribute towards important conversations.

CFOs need to grow their level of C-Suite influence to act as a Strategic Business Partner. This elevates you into a better position to offer insights and recommendations that can help improve business performance.

Here are five levers by Executive Coach and Founder of Xquadrant Richard Medcalf :

Here’s how each practical approach contributes to success:

• Overcome the Ceiling of Complexity: Streamlining recurring tasks frees up time for higher-value activities that drive strategic growth, enhancing productivity and effectiveness.
• Nail the Moments of Truth: Presenting concise and impactful headlines that answer the “so what” captures attention, making key messages memorable and actionable for better decision-making.
• Manage Stakeholders More Than Tasks: Building strong relationships with stakeholders enhances collaboration and trust, enabling you to deliver value beyond your immediate job responsibilities.
• Have a Plan for Finance, Don’t Just Have a Financial Plan: Developing a strategic plan for the finance function ensures alignment with broader business goals and prepares your team for future challenges, driving long-term success.
• Swap Leadership Hats: Adopting a cross-functional perspective allows you to understand and influence organizational dynamics, identify areas for improvement, and partner effectively with other teams to enhance performance.

By implementing these strategies, CFOs can significantly enhance their influence and impact within their organizations.

For an in-depth look at today’s topic on influence strategies, check out the podcast episode Influencing Without Authority with Wassia Kamon, CPA, CMA, MBA , VP of Finance & Accounting at ACM Chemistries. The conversation highlights the importance of business partnering in finance, emphasizing that finance professionals must effectively understand and communicate with other departments to influence decision-making and drive value.?

Without engaging in these strategies, CFOs may face missed opportunities for growth, diminished role value, career stagnation, ineffective decision-making, and weaker organizational alignment, ultimately hindering their ability to contribute to strategic discussions and drive meaningful outcomes. Listen to the full podcast here to learn more:

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